Our thoughts on hospitality and low inflation
I'm not the guy with all the answers but we sort of knew it would drive inflation to an all-time low as hospitality prices were reduced, less money floating around the economy in August, the consumer spend was extremely low due to government support. The government knew this was going to happen but had their hands tied due to low consumer confidence leaving their front door. The hospitality sector was also backed into a corner and many of these businesses had no choice but to jump on the EOTHO scheme. To run a brick-and-mortar business in this country is costly, bills bills bills, there is no escaping these horrid things.
But there is good news, running this scheme in August showed 84,000 restaurants/pubs/cafes joined the scheme and the discount was used over 64 million times in the space of 4 weeks, that's nearly the population of the UK. This demonstrates the power of offering discounts and also proves people are willing to get out more if the price is right.
I know restaurants need to make their money, just like any business but I also think consumers shy away from eating out at nicer spots. I took the Misses for dinner the other night, food, atmosphere and the service were great, but 2 meals, olives, bread, a bottle of wine and 2 desserts for £100, I get there is a price to pay for all these nice things above but some don't see it like this, it's hard to part with your hard earn cash these days, especially after a stint in lockdown you start to learn the value of money a little more, you make great food and drinks at home for a fraction of the cost.
First of all, I'd like to say - I know it's extremely tough for restaurants and fair play to the ones that are still operating but there is still a way to drive these consumers through your door by providing discounts long after the EOTHO scheme, 64 million people using the scheme proved this, it doesn't have to be such a big discount offering like with the EOTHO scheme but find a balance where the consumer is happy to spend without breaking the bank and offers them enough value that still drives them through your door.
We've found with new stats that there is something about offering physical money off rather than a percentage off, a percentage off sometimes doesn't feel real to some consumers but money off does.
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